Mutual Guarantee Fund “Solidarity Guarantee”

elaborated by the Crédit Coopératif’s United and Alternative Financing task force on behalf of the FEBEA, the mutual guarantee fund’s “Solidarity Guarantee” is intended to cover social and solidarity-based economy loans realized by the members and structures which are members of the fund and close to the FEBEA.

given the differences that may exist within solidarity-based economy movements and from one country to the next, we have perfected a multi-level mutualisation system to render a great variety of risks compatible. A highly adaptable structure, the “Solidarity Guarantee” covers the greatest range of sectors possible so the risk is better spread out.

the principal section of the fund (section A) unites the grants or non-refundable advances, as well as the funds initially lent, and the subscriptions paid by the beneficiaries of the guarantee in the fund. Each beneficiary of the guarantee effectively contributes to the fund by a subscription, the amount of which depends on the final risk assessment presented by the subscriber.

the subscriptions to the fund are mutualised. This means they jointly participate in covering the risk. At the satisfactory conclusion of the loan, each subscription is returned to the beneficiary, increased by its financial return and reduced by its participation in failures covered by the fund, in proportion to its participation in section A of the fund.

the specificity of the fund consists in giving interested structures, the possibility of counter-guaranteeing the loans they wish to “sponsor”. In this case, they pay a sponsorship deposit intended to promote solidarity loans for projects, regions or specific themes of its choice. The deposits from sponsorship organisations are not mutualised. Thus, each sponsorship organisation participates only in the risks of its concerned parties. Section B of the fund unites its non-mutualised deposits.

the combination of risks taken by the two sections is the foundation for the “Solidarity Guarantee” mechanism.

the deposits can be replaced by guarantees by signature.


contact : yael.zlotowski@coopanet.com